You may have noticed that new homes are going up around town again. Along with the sale pending signs on existing homes builders are building again. A national index measuring builder sentiment rose in June to its highest level since May 2007. But is buying a new home right for you? Homebuyers trying to decide between new and existing homes have more choices than they have had in the past.
The case for new homes:
New homes come with builder warranties.
New homes allow buyers to select colors and floor plans.
New homes can be easier to insure.
Some builders have their own financing divisions, so getting a mortgage from the builder may be easier than from a lender.
New homes may have a resale advantage.
The case for existing homes:
Existing homes may offer more space for the money and a more convenient location.
Existing homes can be 10 percent to 20 percent less than new construction for comparable square footage.
Existing homes are in established neighborhoods.
New homes can take several months or longer to build.